The Members of
G. G. Automotive Gears Limited
Report on the Standalone Financial Statements
We have audited the accompanying financial statements of G. G. Automotive Gearslimited which comprise the Balance Sheet as at March 31 2018 and the Statement ofProfit and Loss for the year ended and Cash Flow Statement for the year then ended and asummary of significant accounting policies and other explanatory information.
Management's Responsibility for the Financial Statements
The Company's Board of Directors is responsible for the matters stated in Section134(5) of the Companies Act 2013 ("the Act") with respect to the preparation ofthese standalone financial statements that give a true and fair view of the financialposition and financial performance of the Company in accordance with the accountingprinciples generally accepted in India including the Accounting Standards specified underSection 133 of the Act read with Rule 7 of the Companies (Accounts) Rules 2014. Thisresponsibility also includes maintenance of adequate accounting records in accordance withthe provisions of the Act for safeguarding of the assets of the Company and for preventingand detecting frauds and other irregularities; selection and application of appropriateaccounting policies; making judgments and estimates that are reasonable and prudent; anddesign implementation and maintenance of adequate internal financial controls that wereoperating effectively for ensuring the accuracy and completeness of the accountingrecords relevant to the preparation and presentation of the financial statements thatgive a true and fair view and are free from material misstatement whether due to fraud orerror.
Our responsibility is to express an opinion on these standalone financial statementsbased on our audit.
We have taken into account the provisions of the Act the accounting and auditingstandards and matters which are required to be included in the audit report under theprovisions of the Act and the Rules made thereunder.
We conducted our audit in accordance with the Standards on Auditing specified underSection 143(10) of the Act. Those Standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetherthe financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts andthe disclosures in the financial statements. The procedures selected depend on theauditor's judgment including the assessment of the risks of material misstatement of thefinancial statements whether due to fraud or error. In making those risk assessments theauditor considers internal financial control relevant to the Company's preparation of thefinancial statements that give a true and fair view in order to design audit proceduresthat are appropriate in the circumstances. An audit also includes evaluating theappropriateness of the accounting policies used and the reasonableness of the accountingestimates made by the Company's Directors as well as evaluating the overall presentationof the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the standalone financial statements.
In our opinion and to the best of our information and according to the explanationsgiven to us the aforesaid standalone financial statements give the information requiredby the Act in the manner so required and give a trueand fair view in conformity with theaccounting principles generally accepted in India:
(a) in the case of the Balance Sheet of the state of affairs of the Company as atMarch 312018;
(b) in the case of the Profit and Loss Account of the profits for the year ended onthat date; and
(c) in the case of the Cash flow statement of the cash flows for the year ended onthat date.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 issued by the CentralGovernment of India interms of sub-section (11) of section 143 of the Act we give in theAnnexure a statement on the mattersspecified in paragraphs 3 and 4 ofthe Order.
2. As required by section 143 (3) ofthe Act we report that:
a) we have obtained all the information and explanations which to the best of ourknowledge and belief were necessary for the purpose of our audit;
b) in our opinion proper books of account as required by law have been kept by theCompany so far as appears from our examination ofthose books ;
c) the Balance Sheet and Statement of Profit and Loss dealt with by this Report are inagreement with the books of account;
d) In our opinion the aforesaid standalone financial statements comply with theAccounting Standards specified under Section 133 ofthe Act read with Rule 7 oftheCompanies (Accounts) Rules 2014;
e) On the basis of the written representations received from the directors as on 31stMarch 2018 taken on record by the Board of Directors none of the directors isdisqualified as on 31st March 2018 from being appointed as a director in terms of Section164 (2) of the Act.
For S. C. Kabra & Co.
Firm's Registration Number: 000337C
(CA. Paridhi Jain)
Membership Number: 418908
ANNEXURE REFERRED TO IN POINT 1 OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS OFTHE REPORT OF THE AUDITORS ON THE ACCOUNTS OF G.G. AUTOMOTIVE GEARS LIMITED FOR THE YEARENDED 31st MARCH 2018
1 (a) The company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) A major portion of the assets has been physically verified by the management inaccordance with the phased programme of verification adopted by the company. In ouropinion the frequency of verification is reasonable. To the best of our knowledge nomaterial discrepancies have been noticed on such verification.
(c) The title deeds of immovable property are held in the name of the company.
2 The inventory has been physically verified by the management during the year atreasonable intervals. In our opinion the frequency of verification is reasonable. On thebasis of our examination of stock records we are of the opinion that no materialdiscrepancies were noticed on physical verification.
3 The company has not granted any secured or unsecured loans to any companies firmslimited liability partnership or other parties covered in the register maintained undersection 189 of the Companies Act 2013.
4. The company has no such transaction during the year to which the provisions ofsection 185 and 186 of the Companies Act 2013 gets attracted.
5. In our opinion and according to the information and explanations given to us thecompany has not accepted any deposits from the public within the meaning of section 73 to76 of the Companies Act 2013 or any other relevant provisions of the Act and the rulesframed there under.
6. The company is not covered under the clause regarding maintenance of cost records asprescribed by the Central Government under section 148 (1) of the Companies Act 2013 andas certified by the cost auditor the company has maintained proper accounts and recordsfor the same.
7. (a) According to the records of the company the company is regular in depositingwith appropriateauthorities undisputed statutory dues including provident fund employees'state insurance income tax sales tax service tax custom duty excise duty value addedtax cess and other statutory dues applicable to it.
(b) According to the records of the company there are no dues of sales tax servicetax custom duty excise duty or value added tax on account of any dispute except due ofincome tax as follows:
|A.Y. ||Amount ||Forum where dispute is pending |
|2013-14 ||1640540 ||CIT (A) appeal filed on 25.04.2016 |
8. According to information and explanation given to us the company has not defaultedin repayment of dues to any financial institution bank or government. The company has notissued any debentures.
9. The company has not raised money by way of initial public offer or further publicoffer (including debt instrument) during the year. According to the information andexplanation given to us the term loan of the company were applied for the purpose forwhich those are raised.
10. No fraud on or by the company has been noticed or reported during the year.
11. According to information and explanation given to us the company has paid orprovided the managerial remuneration in accordance with the requisite approvals mandatedby the provisions of section 197 of the Companies Act 2013.
12. The said company is not a Nidhi company. Hence the provisions ofNidhi company arenot applicable.
13. According to information and explanation given to us the company has disclosed allthe transactions with the related parties in compliance with the sections 177 and 188 ofthe Companies Act 2013 and details have been enclosed in the Financial Statements asrequired by applicable accounting standard.
14. The company has not made any preferential allotment or private placements ofshares.
15. According to information and explanation given to us the company has not enteredinto any non cash transactions with directors or persons connected with them.
16. The company is not required to registered under section 45-IA ofthe Reserve Bank ofIndia Act 1934.
For S. C. Kabra & Co.
FRN - 000337C
(CA. Paridhi Jain)
Membership Number: 418908
ANNEXURE TO THE INDEPENDENT AUDITOR'S REPORT OF EVEN DATE ON THE STANDALONE FINANCIALSTATEMENTS OF G.G. AUTOMOTIVE GEARS LIMITED
Report on the Internal Financial Controls under Clause (i) of Sub-section 3 of Section143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of G.G.AUTOMOTIVE GEARS LIMITED ("the Company") as of March 31 2018 in conjunctionwith our audit of the standalone financial statements of the Company for the year ended onthat date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls Over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting based on our audit. We conducted our audit in accordancewith the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting(the "Guidance Note") and the Standards on Auditing issued by ICAI and deemedto be prescribed under section 143(10) of the Companies Act 2013 to the extentapplicable to an audit of internal financial controls both applicable to an audit ofInternal Financial Controls and both issued by the Institute of Chartered Accountants ofIndia. Those Standards and the Guidance 168 Note require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assurance about whetheradequate internal financial controls over financial reporting was established andmaintained and if such controls operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgement including the assessment ofthe risksofmaterial misstatement ofthe financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that :
(1) pertain to the maintenance of records that in reasonable detail accurately andfairly reflect the transactions and dispositions ofthe assets ofthe company;
(2) provide reasonable assurance that transactions are recorded as necessary to permitpreparation of financial statements in accordance with generally accepted accountingprinciples and that receipts and expenditures of the company are being made only inaccordance with authorisations of management and directors of the company; and
(3) provide reasonable assurance regarding prevention or timely detection ofunauthorised acquisition use or disposition ofthe company's assets that could have amaterial effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion the Company has in all material respects an adequate internalfinancial controls system over financial reporting and such internal financial controlsover financial reporting were operating effectively as at March 31 2018 based on theinternal control over financial reporting criteria established by the Company consideringthe essential components of internal control stated in the Guidance Note on Audit ofInternal Financial Controls Over Financial Reporting issued by the Institute of CharteredAccountants of India.
For S. C. Kabra & Co.
FRN - 000337C
(CA. Paridhi Jain)
Membership Number: 418908